Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Asiakastieto Group — Q1 2020 Earnings Presentation
45 slides from Enento Group Oyj's earnings presentation, May 8, 2020
Slide 1: CEO Jukka Ruuska and CFO Elina Stråhlman
CEO Jukka Ruuska and CFO Elina Stråhlman 8 May 2020 1 Asiakastieto Group Oyj 8.5.2020
Slide 2: Content
Content Asiakastieto Group in brief − Asiakastieto - in business for 115 years − Nordic company with strong local brands − Four business areas Q1 / 2020 review − Nordic integration progress − Nordic business development New strategy 2023 Key ratios Q1 / 2020 COVID-19 Readiness and resilience 2 Asiak
Slide 3: A leading Nordic company in digital services and data innovations
A leading Nordic company in digital services and data innovations. Asiakastieto Group Oyj 8.5.2020
Slide 4: Asiakastieto - in business for 115 years
Asiakastieto - in business for 115 years In 1905, Suomen Luotonantajayhdistys and in 1912 Liikemiesten Tiedonantoyhdistys (since 1933 Luottotieto ry) were founded. In 1961, Luottokontrolli Oy, a data distributor on hire purchase agreements and payment defaults, was established. In 1973, UC AB was es
Slide 5: Asiakastieto Group
Asiakastieto Group Asiakastieto and UC AB joined forces Intelligent decisions. in 2018. In Finland we operate under Bigger dreams. the brand Suomen Asiakastieto Oy and in Sweden under UC AB. Since July MARKET CAPITALISATION 2019 Proff has been part of the Group. 31.3.2020 615 MEUR LISTED ON NASDAQ H
Slide 6: In the front within digitalisation and data innovation
In the front within digitalisation and data innovation 6 Asiakastieto Group Oyj 8.5.2020
Slide 7: Asiakastieto's four business areas
Asiakastieto’s four business areas DIGITAL PROCESSES CUSTOMER DATA MANAGEMENT Services and solutions Services and solutions ‒ Real estate and apartment information ‒ Target group tools for surveying ‒ Information about buildings and their valuation potential customers ‒ Solutions that help customers
Slide 8: Key figures Q1 / 2020
Key figures Q1 / 2020 Net Sales Net sales growth at comparable FX 37,6 MEUR 10,4 % Net Debt to Number of Personnel Adjusted Adjusted Adjusted EBITDA 31.3.2020 EBITDA EBITDA Margin 2,8 X 432 12,4 MEUR 33,0 % 8 Asiakastieto Group Oyj 8.5.2020
Slide 9: Nordic integration progress
Nordic integration progress 9 Asiakastieto Group Oyj 8.5.2020
Slide 10: Integration proceeding according to plan
Integration proceeding according to plan At the end of 2019 we disclosed that half of the synergy benefits of EUR 17,8 million in total from the combination of Asiakastieto, UC and Proff have been realised. During Q1, the integration work has continued and proceeded according to the plan. 10 Asiakas
Slide 11: Nordic business development
Nordic business development Asiakastieto Group Oyj 8.5.2020
Slide 12: New services share of net sales
New services share of net sales COMMENTS New services, % of net sales → Share of new services was 4,4 %. → Seventeen new services 10,5 launched during the first 9,6 quarter. 8,6 → Activity in service 7,8 development has remained high, and the aim is to increase new services net 4,4 4,4 4,4 sales con
Slide 13: Examples of new services Q1 / 2020
Examples of new services Q1 / 2020 Asiakastieto Group Oyj 8.5.2020
Slide 14: Corporate Radar alerts to check (FI)
Corporate Radar alerts to check (FI) BENEFITS ❑ It provides alerts for abnormal activities and data that could not be used in company ratings ❑ It could show potential fraud companies ❑ It redirects to additional information ❑ It is an additional service to ratings ❑ Alerts concern at the moment: −
Slide 15: ID Protection for companies (SE)
ID Protection for companies (SE) Changes in A full insight An alert credit- into the every time worthiness registered information is and other company updated inaccurate information data You receive an alert every time Notification every time new data Enables you to gain a full insight information a
Slide 16: New Omatieto.fi design released 15.1.2020
New Omatieto.fi design released 15.1.2020
Slide 17: What was included in the release?
What was included in the release? ❑ New design, fresh images and articles ❑ Continuous subscription with credit card in packages ❑ New package My Credit information 24/7, unlimited access to credit related reports The goals for the release ❑ To bring continuous revenue stream from the subscriptions
Slide 18: New strategy - summary
New strategy - summary The Board of Directors has today approved a new strategy for the Group. More details will be presented in the Capital Markets Day, to be held at autumn. Asiakastieto Group Oyj 8.5.2020
Slide 19: The universe of useful data is growing exponentially
The universe of useful data is growing exponentially as digital processes are expanding. This expansion means an ever increasing surge in demand for trust. The implications of COVID-19 will accelerate the digitalisation and the need for data and intelligence. In these uncertain times, the trust is m
Slide 20: We build trust in the everyday
We operate in the Nordics with more than 400 employees and have market capitalization of more than 700M*. Our purpose: We build trust in the everyday. We collect and transform data to intelligence and knowledge which are used in interactions between people, businesses and society. When our data bas
Slide 21: As the Nordic knowledge company, we power society with intelligence
As the Nordic knowledge company, we power society with intelligence. We transform data to knowledge and intelligence that we share with people and businesses through our solutions and products. 21 Asiakastieto Group Oyj 8.5.2020
Slide 22: Our strategic offering goals and enablers
Our strategic offering goals and enablers 1. 2. 3. Retain and No 1 Choice in Become the leader strengthen our data-driven within business leading position in business processes information credit information as a service business Growth Opportunities Fraud Machine Learning Analytics New Data API´s G
Slide 23: Reaching strategic goals will enable strong growth and profitability
Reaching strategic goals will enable strong growth and profitability despite economic downturn Ambitions Enablers Strategic Strengthen our leading position 5 – 10 % within our credit information Revenue growth offering business. goals Become a leader within business Future fit & Profitable growth in
Slide 24: Optimized capital allocation to drive growth
Optimized capital allocation to drive growth and deliver shareholder value Innovation We drive long-term growth through internal innovation ~10% - New services - Cross- sales CAPEX of revenue - Platform transformation Net Debt to Add-on We accelerate growth by Adjusted acquisitions selectively acqui
Slide 25: Key ratios Q1 / 2020
Key ratios Q1 / 2020 Asiakastieto Group Oyj 8.5.2020
Slide 26: Overview of Q1 / 2020
Overview of Q1 / 2020 EUR million COMMENTS (unless stated otherwise) Q1 / 2020 Q1 / 2019 FY 2019 37,6 34,5 146,0 → Net sales growth was +9,0 % Net Sales at reported FX rates and +10,4 Growth (year-on-year) 9,0 % 128,8 % 48,7 % % at comparable FX rates. → Adjusted EBITDA increased by Adjusted EBITDA
Slide 27: Quarterly net sales
Quarterly net sales COMMENTS Net sales, EUR million → Q4/2018 – Q1/2020 with UC 39,2 AB results consolidated to 36,7 37,6 Asiakastieto Group. 35,9 35,6 34,5 → Q3/2019 – Q1/2020 with 31,4 Proff companies’ results consolidated to Asiakastieto Group. 15,1 15,7 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2
Slide 28: Net sales growth
Net sales growth COMMENTS Net sales growth, year-on-year, % → Q4/2018 – Q1/2020 with 146,4 UC AB results consolidated to 135,4 128,8 126,1 Asiakastieto Group. → Q3/2019 – Q1/2020 with Proff companies’ results consolidated to Asiakastieto Group. 16,8 8,9 8,9 9,1 9,0 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1
Slide 29: Net sales growth pro forma
Net sales growth pro forma COMMENTS Net sales growth at reported FX, year-on-year, % → FX comparable growth rate +10,4 %. Net sales growth at constant FX, year-on-year, % 18,3 → Risk Decisions consumer risk management solutions continued their 16,8 good net sales development in the first quarter in
Slide 30: Revenue by business area (reported FX)
Revenue by business area at reported FX rates COMMENTS +1,0 % → Reported net sales growth negatively impacted by FX 23,4 23,6 rate changes year-on-year. Q1 / 2019 Q1 / 2020 +38,2 % 9,9 7,1 +14,5 % -6,6 % 2,0 2,3 2,0 1,9 Risk Decisions SME and Consumers Digital Processes Customer Data Management 30 A
Slide 31: Revenue by business area (comparable FX)
Revenue by business area at comparable FX rates COMMENTS → Risk Decisions consumer risk +2,3 % management solutions continued their positive, although more moderate compared to last year’s very strong, net 23,1 23,6 sales development in the first quarter in Sweden. Finnish market demand was Q1 / 201
Slide 32: Adjusted EBITDA impacted by Proff as well as marketing and IT costs
Adjusted EBITDA impacted by Proff as well as marketing and IT costs; 5,6 % increase y-on-y in Q1 / 2020 3,5 0,2 -0,5 -0,1 -2,4 0,1 -0,1 12,4 11,7 Adjusted Net sales Other Materials Personnel Other Work FX impact Adjusted EBITDA in operating and services expenses operating performed by EBITDA in Q1 2
Slide 33: Free cash flow
Free cash flow COMMENTS Free cash flow, EUR million → Free cash flow impacted by 12,5 high investment activity in the first quarter. → Items affecting comparability impacted the free cash flow by EUR -0,1 7,9 7,3 7,3 million (EUR -0,6 million). 6,9 The items affecting comparability consisted 5,3 pri
Slide 34: Key indicators
Key indicators EUR million COMMENTS (unless stated otherwise) Q1 / 2020 Q1 / 2019 FY 2019 → Cash position of EUR 26,1 Net debt 138,3 140,9 148,1 million (committed EUR 20 Net debt / adjusted EBITDA 2,8 3,0 2,9 million facility remains fully unutilized). → Net debt / adjusted EBITDA Gearing, % 45,7 4
Slide 35: COVID-19 Readiness and resilience
COVID-19 Readiness and resilience Asiakastieto Group Oyj 8.5.2020
Slide 36: COVID-19 Readiness and resilience
COVID-19 Readiness and resilience ❑ Process and readiness - Four Corona action streams established - People, Business continuity, Customers and offering and Finance - Health and safety of personnel number one priority - Contingency plans in place ❑ Financial impacts - Both positive and negative driv
Slide 37: COVID-19 Readiness and resilience
COVID-19 Readiness and resilience ❑ Securing financials: Cost savings and other actions - EUR 5 million savings on budgeted fixed costs for 2020 - Re-prioritized service development and marketing activities - We are ready to quickly respond to new customer needs ❑ Financial position - Net debt to Ad
Slide 38: Guidance 2020 withdrawn temporarily
Guidance 2020 withdrawn temporarily due to COVID-10 pandemic Asiakastieto Group cancelled its guidance for 2020 due to potential COVID-19 impacts and economic uncertainty (27th March 2020) Once visibility on the development of economic activity in the main markets of Asiakastieto Group improves and
Slide 39: Long term financial targets unchanged despite economic downturn
Long term financial targets unchanged despite economic downturn Growth 5-10 percent annual average net sales growth. Profitability Adjusted EBITDA growth rate exceeding net sales growth rate. Balance sheet structure Net debt to Adjusted EBITDA below 3x. 39 Asiakastieto Group Oyj 8.5.2020
Slide 40: New dividend proposal from the Board of Directors
New dividend proposal from the Board of Directors Resolution on the use of the profit shown on the balance sheet and the distribution of funds The Board of Directors proposes that the profit for the financial year is carried forward to the retained earnings and that from the financial year. The Boar
Slide 41: Financials Q1 / 2020 summary
Financials Q1 / 2020 summary Asiakastieto Group Oyj 8.5.2020
Slide 42: Q1 / 2020 Income statement
Q1 / 2020 Income statement EUR million Q1 / 2020 Q1 / 2019 FY 2019 Net sales 37,6 34,5 146,0 Other operating income 0,2 0,0 0,3 Materials and services -6,1 -5,6 -24,5 Personnel expenses -9,6 -9,8 -38,6 Work performed by the entity and capitalised 0,7 0,6 2,2 Other operating expenses -10,7 -8,3 -37,1
Slide 43: Q1 / 2020 Cash flow
Q1 / 2020 Cash flow EUR million Q1 / 2020 Q1 / 2019 FY 2019 Cash flows from operating activities Cash flows before change in working capital 12,3 11,5 47,8 Change in working capital -0,3 0,0 1,6 Net interests and other financing items -0,1 0,0 -2,6 Income taxes paid -1,7 -1,6 -4,9 Net cash from oper
Slide 44: Upcoming events
Upcoming events Date TBC 6 August Autumn 6 Nov June 2020 2020 2020 2020 AGM Half Year Financial Capital Markets Day Q3 / 2020 in Helsinki Report 2020 in Helsinki Interim Report 44 Asiakastieto Group Oyj 8.5.2020
Slide 45: Thank you!
Thank you! Further information Elina Stråhlman CFO +358 40 564 7877 [email protected] Pia Katila Investor Relations +358 50 347 0473 [email protected] Asiakastieto Group Oyj 8.5.2020